Verizon Communications, Inc., is one of the country's largest providers of communication services. The following information for 2004 through 2007 was taken from its annual reports. All amounts are in millions.

Required
a. Divide the class into groups of four or five students. Organize the groups into three sections. Assign each section of groups the financial data for one of the preceding accounting periods.
Group Tasks
(1) Determine the amount of net income for the year assigned.
(2) How does the result in item 1 above affect the retained earnings of the company?
(3) Compute the percentage growth rate in net income for each year.
(4) Speculate as to what may have caused Verizon's revenue growth from 2005 to 2006 to be so much greater than its revenue growth from 2004 to 2005 and 2006 to 2007.
(5) Have representatives from each section put the income statement for their respective year on the board.

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2007 2006 2005 2004 Revenue Operating expense 77,891 74,809 56,937 54,881 $33,469 $88,182 $69,518 $65,751